Most emerging markets in which media company Naspers operates survived the global economic downturn reasonably well, the JSE-listed media company said on Tuesday.
“Overall it was a good year for the group,” Naspers said as it released its results for the year ended March 31 2010.
Naspers said the internet industry showed bold growth in emerging markets while its pay-television operations held up well.
Its technology business returned to operating profitability.
“However, print businesses globally, including our own, suffered in the recession,” the company said.
Naspers recorded a 5% increase in revenues to R28-billion for the past financial year.
Operational profit rose 10% to R5,4-billion, while core headline earnings grew 22% to R5,3-billion.
“The internet segment, comprising mainly Allegro in Central Europe, Tencent in China and Mail.ru in Russia, continued to reflect growth, with revenues up 24%.”
Naspers’s pay-television businesses largely proved resilient to prevailing economic conditions and recorded revenue growth of 12%, with slightly lower operating margins as the company invested to grow the subscriber base.
Irdeto, the TV technology business, “felt economic headwinds'” but nevertheless cut costs.
However, the print media businesses suffered a 5% decline in its top line because of pressure on advertising revenues.
“In a recession people read more, but advertisers spend less,” Naspers said.
Free cash flow of R4,1-billion was recorded.
The financial position remains healthy with consolidated gearing, excluding satellite transponder leases, of 5%.”
Looking ahead, Naspers said it had resilient businesses in emerging markets that were still expanding, but competition in pay TV, regulation and consumer spending levels remained challenging.
“We plan to continue growing the group through a combination of organic growth and acquisitions, focusing on internet,” Naspers said. — Sap